How did global food prices hold up in August?

Rome, Sep 5 (EFE).- The global food price index remained “virtually unchanged” in August compared to the previous month, as the decline in cereals and dairy products offset the increase in meat, which reached “a historic high,” the UN Food and Agriculture Organization (FAO) reported Friday.

The FAO indicator, which monitors monthly changes in international prices for a range of food commodities, stood at 130.1 points, slightly above the July revision (130.0) and 6.9 percent higher than the same month in 2022.

“The decline in prices for cereals and dairy products offset the increase in prices for meat, sugar, and vegetable oils ,” the organization explained, adding that the indicator remained “virtually unchanged” compared to the previous year.

The meat price index also increased by 0.6% in August, reaching a new all-time high, due to rising international beef prices driven by strong demand in the United States and strong import demand from China, which boosted export prices in Australia and Brazil, respectively.

Along these lines, the price of sugar rose slightly by 0.2% compared to July, after five consecutive months of declines, mainly due to concerns about sugarcane production and yields in Brazil and increased global import demand.

On the other hand, cereal prices fell by 0.8% this month, driven by larger wheat harvests in Russia and the European Union (EU), as well as higher corn prices and lower prices for all types of rice.

In addition, FAO revised upward its forecast for world cereal production in 2025, which is expected to reach a record high of 2.961 billion tonnes, 3.5 percent above last year’s level.

Meanwhile, the forecast for global cereal trade in 2025/26 was revised upward to 493.4 million tonnes, representing a 1.4% year-over-year increase, driven by expectations of abundant exportable maize supplies and strong demand for wheat. EFE